Assessment

Question 1

Ebony owns a business that does the following:

Oversees real estate transactions to completion

Brings together the parties to a real estate transaction, such as a buyer and a seller

Ebony’s business likely engages in:

Answer 1

real estate brokerage

Real estate brokerage is the business of overseeing, consummating, and completing real estate transactions and business by bringing together the parties to a transaction.

Question 2

Asia is building several homes on an undeveloped plot of land. There are no buyers, but the owner is confident the homes will sell after they are constructed. These homes are:

Answer 2

speculative homes

Speculative homes are built even though there is no identified buyer before construction is started.

Question 3

Johnathan is considering working for a real estate brokerage, but he doesn’t know the scope of what his job responsibilities will be. You inform him that brokerages take care of, among other things:

Answer 3

Sales and Leasing

Explanation:
Brokerages are responsible for, among other things: sales and leasing, property management, appraising, financing, and counseling.

Question 4

Grover is overseeing a transaction in which one party is a business that owns a piece of property. As such, Grover is likely a:

Answer 4

Business broker

Explanation:
Business brokers facilitate the real estate transactions that involve businesses.

Question 5

A sales associate needs to direct their client to a few sources of third-party financing. You tell the sales associate to look into:

Answer 5

Commercial banks, savings associations, and credit unions

Explanation:
Many clients will need third-party financing which can come from commercial banks, savings associations, credit unions, and mortgage brokerage companies.

Question 6

Ivory, a seller, is nervous about her appraisal being accurate. She wants to know how it will be conducted. As her agent, you tell her that in Florida:

Answer 6

Appraisals must conform to USPAP standards, while CMAs and BPOs do not.

Question 7

In which of the following situations would a sales associate need a CAM license?

Answer 7

Tim is managing a condo with 12 units and an annual budget of $150,000.

If a license holder is managing a condominium property with 11 or more units and an annual budget over $100,000, they need a CAM license.

Question 8

Reuben is developing and building upon a piece of land. He acquires the land, subdivides it, and ensures it is usable. Generally speaking, what should Reuben’s next step be?

Answer 8

Record his subdivision plat map.

The steps to development and construction are land acquisition, subdividing and development, and recording the plat map of the subdivision.

Question 9

Jamar specializes exclusively in commercial real estate sales. Which of the following properties fall under this category?
-a movie theatre
-undeveloped land
-a single-family home
-a public park

Answer 9

Movie theatre

Commercial properties generate revenue for their owners. Commercial real estate can include office buildings, retail complexes, gas stations, entertainment venues, and/or restaurants.

Question 10

Dierk owns a property in Florida but lives in Texas. Dierk is a(n):

Answer 10

Absentee Owner

Absentee owners own a property but do not live in it.